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Project Objectives

   
The Mini Hydro Power Project (MHPP) represents a continuation of development co-operation in the mini hydro sector started in 1991. Indonesia is blessed with an abundance of water resources, which if properly harnessed can provide rural communities with a clean and valuable source of energy. Mini hydro potential, which is particularly suitable for supplying electricity to remote rural areas, is estimated at around 500 MW of which only 21 MW have been exploited.
Through MHPP the utilization of mini hydro power shall contribute to the overall goal of a sustainable development. To improve the living conditions of the population (defined as income and employment), rural communities and small and medium enterprises (SME) were facilitated to utilize hydroelectric power to an increasing degree for productive purposes.
To achieve this, MHPP focuses in the current project phase (05/2002-04/2005) on the following 4 main objectives:

I. Transfer Of Know-How

The fundamental requirement enabling sustainable development of mini hydro power projects is a comprehensive technical competence to identify, plan, implement and commission schemes fulfilling certain technical standards. The first of four main-objectives in the current project phase is to continue providing technical support and know-how to the MHP equipment suppliers and contractors facilitating independent implementation of projects.


II. Facilitate Access To Funding

Despite the improving economic environment for renewable energy projects in Indonesia, access to project finance through the Indonesian banking sector is extremely difficult. The second objective of MHPP aims to address this problem by establishing access to suitable sources of financing for mini hydro power projects.


III. Support Income Generating End-Uses

The provision of an energy source in rural areas besides improving the basic living conditions of the communities should also support economic development contributing to poverty alleviation. The third objective of MHPP is therefore to support implementation of exemplary mini hydro power projects linked to productive end-uses stimulating income generation in the respective locations.

IV. Encourage Networking And Experience Sharing

The fourth objective is through various media, disseminate the experiences of the project to as broad an audience as possible at national, ASEAN-wide and international levels.

As foreign direct investments (FDI) are the most important source of finance for developing countries, an additional objective of the project is to identify and initiate appropriate "Public Private Partnerships" (PPP). PPPs are projects combining private business interests with governmental developmental goals in a way that supports both partners in fulfilling their objectives more efficiently.

For European businesses and their sister companies abroad MHPP provides an infrastructure in the field, regional and sector know-how, contacts to Government authorities, NGOs, other relevant institutions, as well as experience in planning, consulting and project implementation.

In exchange we would expect long-term commitments for economic engagement, transfer of know-how and human resource development from prospective European partners. We would be happy to receive your ideas.

 

 

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Last modified: 29-Jun-2006